Are you pondering the question, “Where can I get a personal loan?” If so, you may be thinking about approaching a member of the family. Although this can be a great idea, it can also be full of pitfalls and problems. Before you make such an important decision, here are some things to consider about borrowing from family.
Consider the Reason for Borrowing
Why do you need the money? If your question “Where can I get a personal loan?” is for medical bills or you need some emergency repairs, most relatives will understand and may be more than happy to help you out. However, if you want to buy a luxury item or you’re thinking about starting up a business, you could be disappointed.
Consider Your Situation
What is your relationship status with the relative you plan to ask? Have you always been close? On the other hand, maybe it’s someone you rarely see, and if you ask this person for money, he or she might think you’re trying to take advantage of him or her.
Benefits
When you borrow from family, you probably won’t need collateral, and they won’t check your credit rating. You can borrow money on a handshake. You’ll pay low-interest rates or maybe no interest at all.
Drawbacks
If you are late with loan payments, it can cause serious relationship problems. In fact, if you default, it could create issues that last a lifetime. Even the best of families can have serious issues with lending money. Before you answer the question, “Where can I get a personal loan?”, consider all the things that might go wrong when you approach family members.
Alternatives
When you need money, and you want to keep it confidential, consider a personal loan from a trusted lender. They don’t ask many questions, and no one in your family has to know.
